Presentation on theme: "1 Risikokapital og finansiering UIO, 1 februar 2005."— Presentation transcript:
1 Risikokapital og finansiering UIO, 1 februar 2005
2 Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?
3 FSV is a leading Nordic VC Among the oldest and most seasoned VCs in the Nordic –Established in 1985 –Currently investing from MNOK 530 FSV III, raised April 2000 –Operating FSV IV, MNOK 590, largest secondary direct in the Nordic to date –FSV was a founding member of the NVCA (in 1989 …. and in 2001) Experienced Investor in Nordic and international tech companies –Reviewed >3 000 projects and 6-8 portfolios since inception Invested in 65+ companies and one major portfolio –Close co-operation with Advent International throughout –Founding member of the Nordic Venture Network Proven exit track record –12 IPOs, 3 on Nasdaq –46 industrial exits Introduced International VC structures to Norway –Preference shares, Anti-dilution, Veto-rights, Drag, Tag etc.
4 Our business….. Is to identify high potential growth companies.. Invest in these companies ……work closely with management and other owners to build value in a 3-5 years perspective... Exit (IPO or trade sale), and repeat… Structured as funds to ensure liquidity focus and to protect owners
5 FSV currently manages approx. NOK 2 billion invested capital across 100+ portfolio companies Established 1985 NOK 130 mill. fund ICT sector focus Fund closed FSV I Established 1996 NOK 300 mill. fund Dedicated ICT fund FSV II Established 2000 NOK 530 mill. fund Dedicated ICT fund 70+% of committed capital invested FSV III Established 2003 NOK 590 mill. secondary fund with follow-on capital Sectors include: ICT, energy, maritime, services FSV IV
6 FSV has a diversified blue chip investor base Main shareholders in Four Seasons Venture II Aksjefondet Skandia Teknologi Bonheur ASA Den Norske Krigsforsikring for Skib Ganger Rolf ASA Gjensidige NOR Forsikring Gjensidige NOR Sparebank Gjensidige NOR Spareforsikring Møller Investor AS Schibsted Multimedia AS Skaufoss AS Torstein Tvenge Vesta Forsikring AS Main shareholders in Four Seasons Venture III Avanse Bonheur ASA Control Consult AS Den Norske Krigsforsikring for Skib Gjensidige Forsikring Gjensidige NOR Spareforsikring Hartog & Co. AS Orkla ASA Schibsted Multimedia AS Skandia Liv AB Sparebank 1 Livsforsikring AS Storebrand Livsforsikring AS Torstein Tvenge Main shareholders in Four Seasons Venture IV Brage Invest AS Dyvi AS Firmament AS Foinco AS Hafslund Offentlige Pensjonskasse Hamang Papirfabrik AS Indigo Invest AS Institusjonen Fritt Ord Lærdal Finans AS Natexis Private Equity International Opplysningsvesenets Fond Skagen Vekst Sundt AS Tredje AP-Fonden Vital Forsikring ASA
7 Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?
8 A good VC manages risk Private Equity Investments Treasury Bonds Public Shares Venture Investments Return Risk Corporate Bonds Due diligence process and right agreement structures are key risk management tools Seed Investments Pre-seed Investments
9..and seeks to optimise the risk-reward ratio Build your execution plan Estimate capital required Consider risk-reward from investor perspective (market risk? - technology risk? - team risk?)....reiterate Knowing the customer is a pre-requisite for a succesful sale (you want the investor to ’buy’ your story) Knowing the customer is a pre-requisite for a succesful sale (you want the investor to ’buy’ your story)
10 The venture lifecycle is fairly standardised Screening Due Diligence Vekst / Internasjonal- isering Vekst / Internasjonal- isering Investering Exit years Dealsourcing Screening Due Diligence Vekst / Internasjonal- isering Growth/ International- isation Investering Investment Exit 2-18 weeks - Screening: Ensure broad flow of high quality Conduct initial screening Due Diligence: Deep analysis of the company Issue Term Sheet Complete legal, commercial and technological Due Diligence Investment: Unanimous partner group Investment committee approval Best practice legal structures Growth/Intern.: Build the company Exit: Exit through: -Merger -Trade Sale -IPO Purpose
11..and most VC’s look for the same basic things A great team …….and ideally a good idea and scalable business model A large and/or fast growing market
12 Building trust early creates the right basis
13..for a productive partnership VC’S DRIVE THE VALUE AGENDA: Strategic & international perspective and experience Partnering: customers, channel and technology Building the management team Coaching (and changing) management Financial and strategic control functions Assisting in M&A, IPO and other financing activities Balancing the technology and market perspectives
14 Who controls the company following an investment? … maintaining sense of shared purpose is essential for success
15 Classic entrepeneur pitfalls Explaining product/business model is only thing that matters VCs consider individual projects solely on their own merits Raise money when needed as opposed to when available 100% times 1 > 30% times 10 VCs focus exclusively on maximising upside Rational machines, not emotional humans….
16 Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?
17 Creating a successful startup Share – information, ownership, honour Sell – to everyone all the time Create an ecosystem – people can move mountains Get paying customers - the proof of the pudding is in the eating! … Create a self-fulfilling prophecy!